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Labor productivity: time is money 

By identifying and addressing relatively small inefficiencies in worker performance, it is possible to make substantial productivity gains.
Each stage of a mining operation requires incredibly tight coordination, to ensure that neither equipment nor work teams are unproductive. A number of key indicators determine workforce efficiency, including output per man shift (OMS), and cost of manpower per unit of material extracted.

Levers for improving labor productivity

Lost blasts should be avoided, as they leave resources waiting at great cost, which reduces OMS. Absenteeism typically means paying for expensive replacements at short notice, often on overtime rates, so patterns should be tracked to ensure staff have genuine reasons for being off work.

An excess of executive positions, along with overlapping or ambiguous roles, can mean too many non-productive workers, pushing up costs per unit extracted. If a work crew has a surplus or shortage of specialists, or lacks appropriate experience, work quality will suffer.

Greater use of contractors reduces fixed costs and provides flexibility to adapt to variable production levels. However, over-reliance on external manpower can leave a mine vulnerable to price hikes and potential shortages.

Turning the levers

Calling on our large database of results and experience with surface and underground mines from around the world, KPMG firms can help benchmark performance of mine workers with peers in similar operations, and identify areas of lower productivity. We can scrutinize management structures and crew composition to ensure well-balanced, cost-effective and productive teams.

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